MoneyBackPlans

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Features

Unlike
ordinary endowment insurance plans where
the survival benefits are payable only
at the end of the endowment period, this
scheme provides for periodic payments
of partial survival benefits as follows
during the term of the policy, of course
so long as the policy holder is alive.

In the case of a 20-year Money-Back Policy
(Table 75), 20% of the sum assured becomes
payable each after 5, 10, 15 years, and
the balance of 40% plus the accrued bonus
become payable at the 20th year.

For a Money-Back Policy of 25 years (Table
93), 15% of the sum assured becomes payable
each after 5, 10, 15 and 20 years, and
the balance 40% plus the accrued bonus
become payable at the 25th year.

An important feature of this type of policies
is that in the event of death at any time
within the policy term, the death claim
comprises full sum assured without deducting
any of the survival benefit amounts, which
have already been paid. Similarly, the
bonus is also calculated on the full sum
assured.

Benefits

IntroductionInsurance Regulatory & Development
Authority (IRDA) requires all life insurance
companies operating in India to provide
official illustrations to their customers.
The illustrations are based on the investment
rates of return set by the Life Insurance
Council (constituted under Section 64C(a)
of the Insurance Act 1938) and is not intended
to reflect the actual investment returns
achieved or may be achieved in future by
Life Insurance Corporation of India (LICI).

For the year 2004-05 the two rates of investment
return declared by the Life Insurance Council
are 6% and 10% per annum.

Product summary These are Money Back type Assurance
plans that provide financial protection
against death throughout the term of plan
along with the periodic payments on survival
at specified durations during the term.

Premiums :Premiums are payable yearly, half-yearly,
quarterly, monthly or through salary deductions
as opted by you throughout the term of the
policy, or till the earlier death.

Bonuses
:
This is a with-profit plan and participate
in the profits of the Corporation’s
life insurance business. It gets a share
of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand
Sum Assured annually at the end of each
financial year. Once declared, they form
part of the guaranteed benefits of the plan.
Final (Additional) Bonus may also be payable
provided policy has run for certain minimum
period.
Death Benefit: The Sum Assured plus all bonuses
to date is payable in a lump sum upon the
death of the life assured during the policy
term irrespective of the Survival benefit
/benefits paid earlier.

Survival
Benefits:The percentage of Sum Assured as
mentioned below will be paid on survival
to the end of specified durations :

% of Sum Assured
paid at the end of specified duration

Duration

Plan

75

93

5

20%

15%

10

20%

15%

15

20%

15%

20

40%

15%

25

-

40%

All bonuses declared upto the maturity date
will also be paid alongwith the final survival
benefit.

Supplementary/Extra
Benefits :
These are the optional benefits that can
be added to your basic plan for extra protection/option.
An additional premium is required to be
paid for these benefits.

Surrender
Value:
Buying a life insurance contract is a long-term
commitment. However, surrender values are
available under the plan on earlier termination
of the contract.

Guaranteed
Surrender Value:
The policy may be surrendered after it has
been in force for 3 years or more. The guaranteed
surrender value is 30% of the basic premiums
paid excluding the first year’s premium
and all survival benefits paid earlier.

Corporation’s
policy on surrenders:
In practice, the Corporation will pay a
Special Surrender Value – which is
either equal to or more than the Guaranteed
Surrender Value. The benefit payable on
surrender is the discounted value of the
reduced claim amount that would be payable
on death or at maturity. This value will
depend on the duration for which premiums
have been paid and the policy duration at
the date of surrender. In some circumstances,
in case of early termination of the policy,
the surrender value payable may be less
than the total premiums paid.

The Corporation reviews the surrender value
payable under its plans from time to time
depending on the economic environment, experience
and other factors.

Note:
The above is the product summary giving
the key features of the plan. This is for
illustrative purpose only. This does not
represent a contract and for details please
refer to your policy document.